Barring Menhood, IndiaMART, Nykaa, MapmyIndia and Yudiz, 27 of the 31 new-age tech stocks under Inc42’s coverage fell in a range of 0.83% to over 16% in the second week of January
The total market cap of the 31 new-age tech companies under Inc42’s coverage stood at $88.38 Bn at the end of the week as against $98.68 Bn at the end of the previous week
Unicommerce,Tracxn and DroneAcharya touched fresh all-time lows this week
New-age tech stocks slumped and saw their cumulative market capitalisation decline by $10 Bn amid a correction in the broader Indian equities market this week.
Barring Menhood, IndiaMART, Nykaa, MapmyIndia and Yudiz, 26 of the 31 new-age tech stocks under Inc42’s coverage fell in a range of 0.83% to over 16% in the second week of January.
Kids-focussed omnichannel retailer FirstCry was the biggest loser, with its shares falling 16.35% to close at INR 538.30 this week.
On January 6, the company informed the exchanges that it has sought approval of its shareholders for “remuneration towards 51,80,000 Employee Stock Options” granted to its managing director and CEO Supam Maheshwari.
On Friday, after market hours, the company said that the GST proceedings against it on the notices received from the Karnataka GST authorities for FY21 and FY22 have been concluded. The explanations and submissions provided by the company for the FY22 notice were accepted and found in order by the GST authorities.
For FY21, it said, “… In response to excess ITC claims (3B vs 2A), the company has reversed IGST of INR 29.74 Lakh out of input credit ledger and paid IGST of INR 56,303 along with interest of INR 44,287 for short payment of reverse charge mechanism. Except for the above liability, other discrepancies with respect to short taxes paid and interest liability have been resolved and the proceeding initiated under section 73 of CGST/SGST Act 2017 has been dropped…”
PB Fintech was the second biggest loser this week, with its shares dropping 16.20% to INR 1,856.15. On January 2, the fintech company forayed into the healthcare segment by incorporating a new subsidiary PB Healthcare Services Private Limited. On the back of this development, the company’s shares touched a fresh all-time high of INR 2,254.95 on January 6 (Monday).
SaaS company Unicommerce hit a new all-time low at INR 157 during the intraday trading on January 10. Its shares ended the week slightly 7.41% lower at INR 157.35. Tracxn and DroneAcharya also touched their all-time lows this week. Zaggle, CarTrade, Fino Payments, TAC Infosec, Go Digit, were among the other losers this week.
Meanwhile, the broader Indian market plunged this week. While Sensex declined 2.33% to end the week at 77,378.91, Nifty 50 dipped 1.57% from last Friday to end at 23,440. Multiple factors contributed to this bearish sentiment, including the downward revision in Indian GDP growth estimates to 6.4% for FY25. According to Vinod Nair, head of research at Geojit Financial Services, this revision casts a shadow over the economy’s momentum.
Besides, the week also saw some of the listed companies disclose their financial numbers for Q3 FY25, which according to experts were underwhelming. Adding to this was persistent selling by FIIs due to high valuations and global headwinds.
“However, a glimmer of hope emerged as the initial set of results from the IT sector showed promise. Looking ahead, corporate earnings will be in the spotlight, with major companies, including IT giants, releasing their Q3 results. Macroeconomic data, such as India’s inflation rate and industrial production figures, will also play a crucial role in shaping market direction. On the global front, updates on the US economy, particularly labour market data and inflation trends, may impact FII flow,” Nair added.
Now, let’s take a look at the performance of the 31 new-age tech stocks this week.
The total market cap of the 31 new-age tech companies under Inc42’s coverage stood at $88.38 Bn at the end of the week as against $98.68 Bn at the end of the previous week.
Swiggy, Zomato Fall Amid Rising Competition
Shares of foodtech majors Swiggy and Zomato declined this week amid increasing competition and regulatory issues.
Shares of Zomato ended the week 10.89% lower at INR 243, wiping off about $3.5 Bn from its market cap.
On Friday, the company officially announced the launch of Blinkit’s 10-minute food delivery app Bistro. Earlier in the week, the foodtech major also launched a different 15-minute food delivery service in parts of Delhi NCR.
Amid all these, Jefferies gave Zomato a ‘Hold’ rating this week along with a price target (PT) of INR 275.
Its rival Swiggy got an ‘Outperform’ rating from Bernstein and a PT of INR 635.
Adding to its list of experiments, the company separated Swiggy Instamart to a standalone app, launched new app Pyng, and a 15-minute food delivery app SNACC.
Besides quick commerce, Zomato and Swiggy are also competing in the quick food delivery space now. The likes of Zepto, Swish and Zing are also seeking a share of this pie.
Meanwhile, the National Restaurant Association of India (NRAI) is firming up plans to approach the Competition Commission of India (CCI) for an intervention against the launch of 10-minute food delivery apps by Zomato and Swiggy.
Paytm, MobiKwik Also Take A Hit
Despite some positive developments, shares of both fintech companies declined this week. While Paytm fell 13.77% to end the week at INR 847.05, shares of MobiKwik fell 8.44% to INR 549.10.
The companies were in the news for the following reasons this week:
- Paytm retained its third position in the UPI landscape in December 2024.
- Bernstein gave Paytm an “Outperform” rating with a PT of INR 1,100, citing its ability to effectively monetise its core payments business.
- MobiKwik reported a net loss of INR 3.59 Cr in Q2 FY25. Sequentially, the company was able to trim its loss by about 45% from INR 6.62 Cr. Its EBITDA stood at INR 6.80 Cr in Q2 FY25, down 37% from INR 10.8 Cr in the year-ago quarter.
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